Abstract The article presents information on simplifying the presentation of compound interest formulas. The author presents the following plan as his recommended method for the teaching of this subject. The salient features of the plan are to limit the number of required formulas to three. First to restrict the number of symbols in all formulas to three or four. Secondly, it does not require an analysis or development of any formula and thirdly concentrate upon demonstrated analyses of an unlimited number of representative problems in terms of the three selected basic formulas. The writer is convinced that the intermediate accounting student should be given the benefit of the most simplified technique for solving his compound interest problems. By so doing a greater amount of classroom time can be made available for the analysis of each problem for the basic factors involved. Since practically all problems may be analyzed in terms of the basic formulas, the scope of such analyses is restricted to three principal categories.
Lawrence W. Sherritt (Sat,) studied this question.